Microsoft pulls out
E-commerce
06 May 2008
Microsoft has backed down from its takeover attempt of social internet site, Yahoo! it has been reported.
The two firms have failed to agree a price after weeks of negotiations and Yahoo!'s share price and its chief executive officer, Jerry Yang, are feeling the pinch.
Sky News reported Roland Hirschmueller, an analyst at brokerage, Baader, said: "Yang is certainly under a lot of pressure now."
"His days are numbered, if he doesn't manage to come with an alternative strategy," he added
Prior to the end of negotiations, Microsoft's value had fallen amid worries the deal would be so complicated as to help its search competitors.
Microsoft set Yahoo! a deadline following hostile exchanges between the companies, although Mr Yang refused its improved offer of almost £16.72 per share.
Yahoo!'s share price jumped 50 per cent since the original proposal in January but since the end of talks it has fallen to only £11.42.
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